NHS cash is good news for Care UK

TOTALLY flat first-half profits were countered by an upbeat forecast for the second half as Care UK - which provides services to the elderly and mentally ill - said it saw significant opportunities coming from the Government's commitment to increased health sector funding.

Chief executive Mike Parrish said: 'We believe that demand will emerge from Primary Care Trusts for local intermediate care and treatment centres as well as for more advanced forms of care at home.

'There is also emerging evidence that Health Authorities and Social Services will increasingly seek composite solutions providing care for a range of needs both in residential and domiciliary environments.'

He said the group had a good new business pipeline and was restructuring into just two divisions. One division will be based on residential homes and the second will focus on caring for patients in their own homes.

However, in the six months to the end of March, pre-tax profits were completely flat at £3.06m and earnings actually fell by 2% to 4.45p a share, despite a 20% increase in turnover to £46m.

The interim dividend has been raised by 6% to 0.85p. Parrish said he expected to 'show a good improvementî in the second half.